Tata Motors jumped over 3 percent followed by Bajaj Auto, Eicher Motors, TVS Motor Company and Balkrishna Industries.
The Indian stock market continues trading in the green nearing 4-month high with Sensex is up 149.23 points or 0.42% at 35992.93, and the Nifty added 47.30 points or 0.45% at 10599.
Among the sectors, the auto index gained almost a percent led by Tata Motors which jumped over 3 percent. It was also one of the top index gainers. The other performers included Bharat Forge which added 5 percent followed by Bajaj Auto, Eicher Motors, TVS Motor Company and Balkrishna Industries among others.
Share price of Motherson Sumi Systems shed 5 percent and was one of the most active stocks on NSE in terms of volumes with 6,66,42,658 shares being traded at 11:35 hours.
Global research firm CLSA has maintained an outperform call on the stock with target of Rs 110 per share. It is of the view that business realignment is a medium-term positive but crossholdings remain adding that minority shareholders would continue to own 38 percent in Domestic Wiring Harness (DWH), according to a report by CNBC-TV18.
CLSA estimates tractor industry growth of 15 percent YoY in FY21. It prefers rural-focussed and non-discretionary categories with Hero MotoCorp and Mahindra & Mahindra being the top bets.
Motilal Oswal has a buy rating on the stock with target of Rs 122 per share, implying an upside of 18 percent. It is of the view that the stabilization of SMP’s greenfield plant is critical in driving earnings recovery for the company which it estimates would reflect in FY21. This, coupled with the execution of a strong order book and limited capex at SMPBV as well as the India business benefitting from the content increase in BS6, augurs well for Motherson Sumi.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.